The curbs, imposed in 2020 after a deadly clash between the countries’ troops, required Chinese bidders to register with an Indian government committee and obtain political and security clearances
India’s finance ministry plans to scrap five-year-old restrictions on Chinese firms bidding for government contracts, two government sources said, as New Delhi seeks to revive commercial ties in an environment of reduced border tensions.
The curbs, imposed in 2020 after a deadly clash between the countries’ troops, required Chinese bidders to register with an Indian government committee and obtain political and security clearances.
The measures effectively barred Chinese firms from competing for Indian government contracts that were estimated to be worth $700 billion to $750 billion.
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Reuters is the first to report on the plan to ease the restrictions.
One of the sources said officials were working to remove the registration requirement.
Both sources, who declined to be named as they were not authorised to speak publicly, said Indian Prime Minister Narendra Modi’s office will make the final decision.
India’s finance ministry and the prime minister’s office did not respond to Reuters requests for comment.
The restrictions led to shortages and delays
The restrictions had a significant impact: months after they were made public, China’s state-owned CRRC was disqualified from bidding for a $216 million train-manufacturing contract.
The Ministry of Finance’s plan to ease the curbs followed requests from other government departments that face shortages and project delays due to the 2020 restrictions, the sources said.
A high-level committee headed by a former cabinet secretary, Rajiv Gauba, has also recommended easing the restrictions. Gauba is a member of a prominent government think tank.
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